MSCI upgraded to Buy from Hold at Deutsche Bank

Deutsche Bank upgraded MSCI to Buy from Hold with a price target of $569, down from $613. MSCI’s Q1 earnings print was disappointing mainly due to unexpectedly high cancellations inclusive of impact from Swiss banks’ merger, the analyst tells investors in a research note. However, with the stock down over 13% post earnings and now trading at a “compelling valuation,” Deutsche sees a “compelling entry point for long-term oriented shareholders.” It views MSCI’s issues in the quarter as largely cyclical, as opposed to structural. Net new sales should accelerate from here as Q1 is typically a seasonally weak period for new sales, contends the firm.